If Two Assets Have a Zero Correlation, Their Returns Will

question 2

Multiple Choice

If two assets have a zero correlation, their returns will:

• A)always move in the same direction by the same amount.
• B)always move in the same direction but not necessarily by the same amount.
• C)move randomly and independently of each other.
• D)always move in opposite directions but not necessarily by the same amount.
• E)always move in opposite directions by the same amount.

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Definitions:

Aspirations

Aspirations refer to strong desires, longings, or ambitions for achieving something, often implying a strategic plan or a set goal in one's personal or professional life.

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The division of government responsible for implementing and enforcing laws, headed by the president or prime minister.

Legislative Branch

A part of a government responsible for making laws, often comprising a parliament or congress, divided into two houses in some countries.

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